Stocks Closed Lower As Bond Yields Rise

Market Moves You Need to See Stocks Closed Lower As Bond Yields Rise [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Lower As Bond Yields Rise [Stocks Closed Lower As Bond Yields Rise]Image: Bigstock Stocks closed lower yesterday with all of the major indexes down by more than -1.20%, with the Nasdaq down by -1.87%. Rising Treasury yields (the 10-year is now at a 16 year high), underscores the narrative of higher for longer. And that's weighing on stocks. Not too long ago, yields were heading back down on the idea that the Fed would be cutting rates by 100 basis points next year, with some thinking it would begin sooner rather than later. But after the last Fed meeting, they commented that they could still see one more rate hike by year's end, and that next year could see them cut rates by just 50 basis points rather than the 100 that had been expected. In other news, yesterday's Job Openings and Labor Turnover Survey report (or JOLTS for short) came in hotter than expected at 9.61M job openings vs. last month's upwardly revised 8.92M and views for 8.75M. This was a case of good news being bad. A hot labor market suggests higher rates might indeed be needed. Although, the job report everybody is really waiting for is Friday's Employment Situation report. Last month's report showed more jobs were created than expected, but that job growth cooled from its record setting pace, while hourly wage growth rose less than expected. Robust job growth is wanted, but not rip-roaring job growth as that signals the increase in interest rates is not having as much of an effect at slowing the economy down (and thus inflation) as expected. So a solid number should be cheered on Friday, but not a blowout one. But before that comes, we've got a full docket of reports to get thru today including MBA Mortgage Applications, the PMI Composite report, the ADP Employment Report, Factory Orders, and the ISM Services Index. The markets were also transfixed on the House vote to remove the Speaker. And after the close, they did. Politics aside, it throws into question who will lead the House if they do? And what happens after the short-term funding bill expires on November 17. Every day is needed to get the budget figured out to avoid a government shutdown. And this only injects further uncertainty into the process and the markets. Rough start to the new quarter so far. The statistical odds still favor a strong Q4 rally. But the current pullback has some wondering if it will come at all. I'm in the rally camp. But the market is going to have to put in a bottom first. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [5 Stocks to Buy Immediately]( Investing titan Luke Lango has an impressive track record of calling innovation stocks before they skyrocket...like TSLA soaring 3628%, AMD 8290%, and GME before it launched 12096%. Now he's revealing his top 5 stocks for the AI Revolution, starting at under $2 a share. [Click here to download this list for free.]( Most Popular Articles from Zacks.com [Relative Strength Alert: Top Ranked Stocks Holding Up in a Weak Market]( Often stocks that attract buyers during a correction are the stocks that will outperform in the next move higher. [Read More »]( [4 Must-Have Retail Stocks for Your Holiday Shopping Cart]( We have highlighted four stocks from the Retail - Wholesale sector that look well-positioned based on their sound fundamentals. [Read More »]( [3 Metal Fabrication Stocks to Watch as Industry Trends Improve]( These industry participants have witnessed order growth and delivered improved results despite the inflationary scenario and supply-chain woes. [Read More »]( [Matrix Service (MTRX) and USA Compression (USAC) are Aggressive Growth Stocks]( Stock strategist Brian Bolan selects two stocks for your aggressive growth radar screen. [Read More »]( [Find Top Stocks to Buy in October Still Trading Near their Highs]( These 'Strong Buy' stocks with proven records of efficiently generating profits that investors might want to buy in September and heading into Q4. [Read More »]( [Tiny Semiconductor Stock Set to Explode (You probably haven't heard of it)]( We've chosen a small-cap primed for extreme growth that could rival or surpass our +850% gain in the giant NVIDIA over the past 3½ years. Today you can get aboard this under-the-radar company for under $10. But the window of opportunity could be brief as the company gains more traction. Flush with patents, it's poised for a huge year with strong earnings growth and an expanding customer base. Download our Special Report for only $1 One Semiconductor Stock Stands to Gain the Most. Hurry, the deadline is midnight Sunday, October 8. [See this time-sensitive stock now »]( [Bull of the Day: Modine (MOD)]( This Zacks Rank #1 (Strong Buy) just reported a record fiscal first quarter. [Read More »]( [New Zacks Strong Buys for October 4th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( More Zacks Resources Mobile App Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com. [Download our Zacks App for Apple iOS]( [Download our Zacks App for Android]( Zacks Members' Success Stories Visit [Success Stories]( to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( This free resource is being sent by [Zacks.com](. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". [www.zacks.com/terms_of_service]( Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through September 4, 2023. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit [( for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from [Zacks.com]( the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606